This marks the first time that any allegations about News International have targeted papers outside the News of the World. The Sun allegedly received details about Brown's son, Fraser, who suffers from cystic fibrosis, when he was an infant, and wrote exclusive stories about his then-unknown illness.

THE Murdoch empire's expansion plans have taken a massive blow, with Britain's Deputy Prime Minister imploring Rupert Murdoch to do ''the decent and sensible thing'' and abandon his bid for control of the UK's pay television market.

The remarks came after investors slashed about $2 billion, or 5 per cent, from News Corporation's market value, partly in response to the escalating phone-hacking scandal.

The lawsuit accuses News Corp. of large-scale governance failures surrounding the British hacking case. News of the World employees have been accused of hacking into the phone of a missing 13-year-old girl, who was later found murdered, as well as those of other crime victims.

The lawsuit accuses News Corp. of large-scale governance failures surrounding the British hacking case. News of the World employees have been accused of hacking into the phone of a missing 13-year-old girl, who was later found murdered, as well as those of other crime victims.

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This makes sense as Rupert has his sons run the European and Australian arms of the Company.

The suit claims that Rupert Murdoch "habitually uses News Corp to enrich himself and his family members at the Company's and its public shareholders' expense."

RUPERT Murdoch's News Limited has announced an audit of expenditure by its Australian newspapers in a bid to ensure their journalistic practices are clean.

The move came as British Prime Minister David Cameron last night announced a public inquiry into the News of the World phone-hacking scandal that could lead to Mr Murdoch being summoned to answer questions before a judge.

In a declaration that could bode ill for the Murdoch media empire, Mr Cameron said: ''The people involved, whether they were responsible for wrong-doing, whether they sanctioned it or covered it up, must not only be brought to justice but they must have no future role in running the media in our country.''

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Mr Cameron specifically included ''proprietors'' and politicians in the list of people that the inquiry, to be led by Lord Justice Brian Leveson, will have the power to summon.

And late last night, News Corporation bowed to the inevitable and withdrew from its $14 billion bid for control of British satellite broadcaster BSkyB

Sen. Bob Menendez (D-NJ) has written a letter to Attorney General Eric Holder, asking him to investigate reports that News International, a subsidiary of News Corp, hacked into the phones of terrorist attack victims, possibly including 9/11 victims.